Trump has dropped his $10 billion lawsuit against the Internal Revenue Service amid reports that he is poised to gain control over a $1.8 billion taxpayer-funded slush fund.

ABC News reported President Donald Trump could settle a lawsuit against the IRS in exchange for a $1.7 billion fund to compensate his allies.

Democrats blasted Trump over a reported $1.7 billion IRS settlement they say could misuse taxpayer funds for political allies.